Talisman to spend C$85 million in Indonesia next year

Canadian leading oil company Talisman Energy has allocated about C$85 million (US$=C$1.17) for its capital expenditures in Indonesia next year.

In a statement released on Tuesday, Talisman estimated its Indonesian oil and liquids production would stand at between 11,000 and 13,000 barrels per day in 2006, while its natural gas output was projected at between 190 and 210 million cubic feet per day (MMCFD).

It expected its Indonesian natural gas output to increase to over 300 MMCFD in 2008 from approximately 175 MMCFD in 2005.

Talisman produces natural gas mostly from Corridor PSC in Indonesia, where the company holds a 36 percent interest. Currently, the block's operator ConocoPhillips is developing the Suban Phase II project, which includes the expansion of the existing Suban gas plant and pipelines.

Talisman said the Corridor expansion project in South Sumatra was on track to deliver first gas to West Java in the first quarter of 2007.

Talisman Indonesian oil and liquids output comes from Corridor PSC, Corridor TAC (40 percent), and the Ogan Komering (50 percent) which is also natural gas producing block.

The company?s Tanjung enhanced oil recovery (EOR) contract expired in November 2004 and the Jambi EOR expired in early 2005. (Robert)